Like coffee or sushi, hospital indemnity insurance can be an acquired taste, but one that’s definitely worth discovering.
If you’ve already realized the power these small supplementary products can pack, we’ll teach you how to step up your sales. If you’re new to the idea, read on to find out why hospital indemnity insurance is worth selling and the information experienced sellers wish they had starting out.
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Understanding the Basics
We’ll keep this short and sweet since we’ve already introduced hospital indemnity plans.
Hospitalization for an injury or illness can lead to medical expenses even the best primary insurance plan won’t cover. Hospital indemnity plans help people pay for costs associated with their hospital visits or stays, such as their copays, deductibles, and prescription drug fees.
Recognizing the Value
There are many benefits to selling ancillary products like hospital indemnity plans, but one huge plus is that you can sell them to clients of any age at any time. In other words, selling these plans allows you to better meet the needs of any client, and earn more in commissions!
How much extra commission are we talking? It’s reasonable to say you could practically double your commission earned on any replacement Medicare Advantage (MA) plan you write by writing an affordable hospital indemnity plan with it.
Learn more about why you should sell hospital indemnity!
Forming a Strategy
Though they can be sold year-round, the best time to market hospital indemnity plans is after open enrollment at follow-up appointments. As you check in with your clients — especially those in $0-premium MA plans with higher deductibles or Medicare MSA plans — remind them how a hospital indemnity plan can alleviate high inpatient hospital costs.
The best time to market hospital indemnity insurance is after open enrollment at follow-up appointments.
If you have clients who didn’t want to schedule a follow-up appointment, give them a call during lock-in. Ask if they’d be interested in hearing about a plan that can provide them further protection. You can also send out individual mailers or letters about the different hospital indemnity plans available to them. To attract new clients, ensure you’re doing all you can to promote your business and market yourself.
Starting the Conversation
Hospital indemnity plans are an easy cross-sale when you begin appointments by reviewing your clients’ current benefits.
First, make sure your clients understand what their current or desired plan covers and what it doesn’t. Then, explain the out-of-pocket costs they could be held responsible for if medical problems arise. Doing so creates a great opportunity for you to bring up hospital indemnity plans, as long as you can discuss them compliantly. Remember, if you’ll be talking about hospital indemnity insurance at a Medicare sales appointment, it should be noted on the Scope of Appointment.
PRO TIP: During appointments, try tactfully asking your clients thought-provoking questions about how they’d be able to handle paying for a medical emergency.
Would you say you live on a fixed income? Would you be able to afford a visit to the hospital? How about a hospital stay lasting a few days? Questions like these can increase their willingness to hear what you’ve got to say.
Closing the Sale
As your appointment draws to an end, be prepared to help your clients answer perhaps the biggest question that will be on their minds: Is it really worth having hospital indemnity insurance?
For those in $0-premium MA plans with high deductibles or Medicare MSA plans, the answer is very likely yes.
Have your client consider the cost of having hospital insurance and that of foregoing it. The annual premium for a hospital indemnity plan for a senior can be as little as $400. Going to a hospital in an ambulance and staying there for one day will likely exceed that cost tenfold in hospital bills. Let your clients know this extra protection could truly pay off.
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No matter the outcome, keep this in mind: In a world where having a clean bill of health can cost a pretty penny, hospital indemnity plans, and the agents who market them, shine.
Ritter Insurance Marketing offers a wide selection of competitive hospital indemnity plans. Learn more at RitterIM.com.
Editor’s Note: This article was originally published November 2016. It has been updated to display information more relevant to 2019.